Betting Big on Artificial Intelligence Data Centers: The Daring Move of Navitas Semiconductor
Navitas Eyeing Multi-Billion Dollar Opportunity with Nvidia's AI Data Centers
Navitas Semiconductor, a leading innovator in Silicon Carbide (SiC) technology, is poised to capitalise on a significant market opportunity worth approximately $2.6 billion annually by 2030, as it collaborates with tech giant Nvidia to improve power efficiency in advanced AI data centers.
Navitas is currently the only company capable of offering SiC voltage ranges up to 6.5kV, with plans to reach 10kV. The company's Gallium Nitride (GaN) power ICs, renowned for their energy efficiency and reduced cooling requirements, are at the heart of this collaboration. These ICs offer a 5% improvement in energy efficiency, significant cuts to data center maintenance costs by up to 70%, and less copper wiring by 45%.
The potential market opportunity for Navitas Semiconductor within Nvidia's 800V data centers is segmented into three areas:
- A $1 billion annual market in 800V DC/DC conversion power chips for high-density AI server racks.
- A $1.2 billion annual market for 48V DC/DC conversion chips tailored for AI processors.
- An additional $500 million annual market from ultra-high voltage (UHV) SiC solid-state transformers (SSTs) that help replace legacy transformer technology within data centers.
The 800V data center opportunity could see Navitas generate $615.6 million in annual revenues in 2030. The company estimates that it could secure an 80% share in the first stage of Nvidia's next-gen architecture, which could see the company realise $456 million in annual revenues from the first stage in 2023. Navitas also aims to secure a 5% share in the third stage, which would translate to $57 million in revenues from this stage in 2030.
However, market adoption is staged, with Nvidia’s 800V HVDC data centers not expected to see initial customer buildouts until 2027. The addressable market for these HVDC power chips is projected to start at around $164 million in 2027, growing to about $1 billion by 2029. This indicates a gradual ramp-up leading to the full $2.6 billion opportunity by 2030.
Navitas faces competition in this market, but its strong intellectual property, partnership with Nvidia, and a favorable market growth rate of AI data centers (~31.6% CAGR) position it for significant long-term growth if 800V architecture adoption proceeds as planned.
Navitas Semiconductor (NASDAQ: NVTS) reported a 29% year-on-year revenue decline in Q2 2025 to $14.5 million. The company also reported a $3.2 million SiC inventory reserve due to soft demand in China. Despite these near-term financial challenges, Navitas plans to minimize its investments and expects to maintain a quarterly cash burn level of $10-11 million in the near term.
In summary, Navitas could capture a multi-billion-dollar market in supplying GaN-based power chips for Nvidia’s 800V AI data centers by 2030, with a structured ramp starting around 2027 and achieving about $2.6 billion in annual addressable market revenue by that year’s end.
- The government could encourage investment in technology sectors, such as data-and-cloud-computing and artificial-intelligence, due to their potential for significant growth and employment opportunities.
- With the increasing focus on environmentally friendly practices, businesses should consider investing in energy-efficient gadgets like those equipped with Navitas Semiconductor's Gallium Nitride (GaN) power ICs.
- The Navitas-Nvidia collaboration could result in a reduction of up to 70% in data center maintenance costs and less copper wiring by 45%, which could have a positive impact on the overall finance and business landscape.
- With the expected ramp-up of Nvidia’s 800V HVDC data centers, there seems to be a promising opportunity for businesses that invest in the latest technology, such as Navitas's SiC solid-state transformers (SSTs).
- As Navitas Semiconductor aims to secure a notable share in Nvidia's next-gen architecture, investors should monitor the company's financial performance and strategic partnerships closely to make informed decisions regarding investing in this burgeoning field.
